Simple answers to Complex Questions and Complex Answers to Simple Questions.
In real life, I'm a Greater-Toronto (Canada) Realtor with RE/MAX Hallmark Realty Ltd, Brokerage. I first joined RE/MAX in 1983 and was first Registered to Trade in Real Estate in Ontario in 1974.
Formerly known as "Two-Finger Ramblings of a Forensic Acuitant turned Community Synthesizer"

Friday, July 27, 2012

Home not selling .... what should I do?

A oft-heard comment is typified by this example posted on our company's internal comm. channel;:I need some help moving my condo/loft listing at XYZ & ABC in W01 Mls district. We've reduced the price two times already and now it's inline or below the market value. 730 sqft hard loft."agent's beautiful web pages"I know I shouldn't be posting active listings on here, but it's a super slow market and the latest headlines don't help, thanks .

Ede says;unsolicited advice ... AND while I cannot quite picture the exact site (is the railway a factor?) ..... Regardless of the specifies here, as a function of the "seasonality" of the annual GTA market (I'll send you the graph on this separately) ...You need either a) more patience or b) a solid price reduction.

If you/your seller think the world's financial markets are about to all apart -then dump it- reduce the price by the value of a parking spot and someone (without a car) will snap it up. If however they(as I) think that it's simply a "summer market after a super hot first half" and that the regular "fall rally" will kick in on the weekend after school returns .... then simply patience is in order.

Be of good cheer though - It is no one's best interest to have interest rates rise (as was threatened earlier this year) our ConFederal gov't (running a still-big annual operating deficit) has ~$900Billion in bonds at an average rate of 3.5-4% if rates rose 2% their/our public debt charge costs would go from ~$35bn to 50bn ... the USA too + all our provinces (never mind Germany and its support-by-borrowing of the beleaguered Euro-weaklings)

Seasonality, each year varies a bit but the trend remains

Buyers buy 2-3 months in advance of closing date/moving date

The higher the price range the longer the lead-time ie 750-900,000 buys in Feb/March for Aug/Septwhile first-timers buy right up to July 15th ...looking for school-start possession

Similarly, sales are slowest in Dec15-Jan 10th because no one wants to move in February-early March (weather)

The second slowest time of yr is "Exhibition Time" - holiday-time for non-executives(who get the July dates), too late for school-start, hot weather and fun-in-sun activities on weekends, real estate folks taking-it-easier, ie anyone who's gonna-buy for Sep 1 .... has bought.